Profit means all revenue minus all expenses. If any organization gains maximum profit means either it may pay a low salary to an employee or it may sale products to customers at a higher price than its cost. If employees are paid low salary then they cannot buy products which they have needed for run their life or if customers compel to pay a high price in one product then they cannot buy others products that’s why I am saying that maximum profit must be controlled by the government. We know that profit is the motivation factor of any investor but maximum profit is not good for a good society. So, maximum profit must be paid to the government otherwise we cannot minimize inequality of society. Nowadays inequality problems are raising every country, to minimize this problem, a profit of any organization must be calculated on the basis of its capital or sales value. The government must play a role as a guardian for all people, that’s why the government must not motivate or facilitate any organization to maximize profit.
To increase business investment, profit must be needed but on the name of increasing investment customers, employees and other related people must not be exploited by any organization. Business investment can be increased by adding new capital. To control the maximum profit of the organization, we can apply some mechanism on profit. But in the regarding to control profit, we must not control to increase its sales otherwise nobody can grow businesses. By considering those things, I have created some ideas to control the maximum profit of any organization. For example, the first condition, if any organization gets net profit in a year more than 20% of its capital amount and sales amount is less or equal to the capital amount, then all more profit amount than 20% amount of its capital amount, must be paid to the government. The second condition, another hand if sales amount is more than its capital amount in a year, then more than 5% net profit of its sales amount, must be paid to the government, by calculating the second condition if favourable profit is come out less than the first condition then the first condition should be applied.
By applying the above profit control mechanism, we can minimize the growing inequality in society. All maximum profit more than limit would be gone to the government, then the government can invest in appropriate areas. So, nobody gets a loss here. If we don’t control the maximum profit of any organization then the only a handful of people able to gather 50% wealth of the world. This situation must be controlled by the government.
By applying profit control mechanism, if private sectors are not interested to invest money to conduct any business then we can conduct by applying new company model, which model I have described on the article about how we can make a better world.
In the name of doing businesses, they must not be allowed by government to loot the society. Business license mustn’t be used for looting the society. Every business can’t be controlled by free market that’s why maximum profit must be controlled by government otherwise poverty never be ended from the world.
Thank you for reading, I highly appreciate to see your feedback on my blog.
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